Italy Asks EU for Urgent and full Financial Backup

Image Credits – Financial Times

Prime minister of Italy, Giuseppe Conte has urged the EU to come in aid with its notable economic rescue fund and extend credits to the members to fight against the biggest global crisis in the modern history as Coronavirus continue to put its grasp over the world beyond China, where it all started.

The prime minister told the Financial Times that ECB bond-buying is praiseworthy but it is not enough in this time of crisis. He also clarified that it is the right time to put the €500 billion fund, European Stability Mechanism which was founded in 2012 amid eurozone’s sovereign crisis in use as the situation worsen claiming more than 3,400 lives alone in Italy.

While some countries like Germany have been reluctant on the matter, with France on the same side, Italy is imploring to join forces to find support to use of the ESM immediately. They are also expressed their wish to issue the common bonds. On the other hand French finance minister, Bruno Le Maire has addressed in the parliament saying that if the eurozone does not response to the crisis immediately it is going to be the end of them.

The European Central Bank came helping as they launched a late-night plan to buy €750 billion in bonds. It has undoubtedly helped with the crushed investing market but this could influence the reluctant eurozone states like Germany to make changes in their budgetary plans for the economic catastrophe.

Though the ESM was created with different sorts of emergency in mind but it must adapt to the situation in hand so that it can be used to its full potential. The PM also mentioned that the first step should be to open the ESM credit line to all the member states to fight against the pandemic and they must exhibit full accountability of the spent resources.

France has also on the same page with Italy with greater solidarity with officials working on the deployment of the ESM in Brussels in response against impending recession. French officials are not sure if they are ready to work together financially.

Death toll due to Coronavirus is now higher in Italy than China with more than 3,405 deaths, officials have confirmed on Thursday.

PM Conte, who is new to the political scene, was chosen to become the prime minister of Italy quite unexpectedly, has gained praise from the votes for his avid work during the crisis despite his legal academic background. A nationwide poll has revealed that seven out of ten Italians are impressed by his response to the pandemic situation.

He said global leaders must take drastic measures to the never before seen situation cautiously. Though the ECB has done praiseworthy work but more must be done to deal with the outbreak as time is of the essence. Conversing with president Christine Lagarde he says that monetary policy is not enough in this matter and more works need to be done on the fiscal front also.

Mr. Conte believes that creating a common debt instrument is their best chance to survive in these falling economical times due to the outbreak. And before the emergency is over this bond will allow the eurozone countries to access finance which will help the entire European economy to recover in a swift motion.

Though Italy had taken measures to contain the spreading of the virus by restricting the movement of people with France, Spain, and Rome following its step, other European countries are now just starting the first phase. It will only get worse day by day just like Italy. The PM has expressed his grievance to his people and the other countries going through the troubling situations

He said that other countries have taken their lessons from Italy which has been a major help. But they are unsure if the restrictions could be lifted in early April as planned if the condition does not improve.

Mr. Conte expressed concern that nationalist politicians would be encouraged which will weaken the support for the EU if Europe fails to take proper measures to fight against the virus outbreak.

He calls for the unity of all European nations and saying, “If Europe fails, I fear it will fade away in the conscience of our fellow citizens, giving space to the worst nationalistic instincts. This is a different virus that we need to defeat now.”


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